Valuation uncertainty risk compensation and IPO prospectus earnings forecasts

Jing Shi, Chris M. Bilson, John G. Powell

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Younger, riskier, less credible firms do not voluntarily supply initial public offering prospectus earnings forecasts. Nondisclosure increases valuation uncertainty risk, thus necessitating higher first-day underpricing and long-run performance as compensation.

Original languageEnglish
Pages (from-to)331-335
Number of pages5
JournalApplied Economics Letters
Volume15
Issue number5
DOIs
Publication statusPublished - 1 Apr 2008
Externally publishedYes

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Initial public offerings
Earnings forecasts
Long-run performance
Underpricing
Uncertainty

Cite this

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title = "Valuation uncertainty risk compensation and IPO prospectus earnings forecasts",
abstract = "Younger, riskier, less credible firms do not voluntarily supply initial public offering prospectus earnings forecasts. Nondisclosure increases valuation uncertainty risk, thus necessitating higher first-day underpricing and long-run performance as compensation.",
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Valuation uncertainty risk compensation and IPO prospectus earnings forecasts. / Shi, Jing; Bilson, Chris M.; Powell, John G.

In: Applied Economics Letters, Vol. 15, No. 5, 01.04.2008, p. 331-335.

Research output: Contribution to journalArticleResearchpeer-review

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